Yahoo, Microsoft, ohsoclose
ADOTAS — I know we’ve been here before, and as some have said this could bomb, but the two web giants are getting to the details on a plan.
Yahoo apparently wants an upfront payment plus revenue guarantees over the course of the deal. (How did that work out for Google with MySpace?) According to AdAge, Yahoo wants more from searches that originate on Yahoo and lead to a purchase, or for clicks on ads after a search for a brand name. Assigning value to different clicks has proven complex and contentious, AdAge reported. In addition, they are also battling over the amount of data Yahoo would get, as it uses search behavior as an ingredient in its behavioral targeting, and whether Bing gets any branding on Yahoo.com.
Kara Swisher says that many believe that a deal needs to be done because winning in search has everything to do with volume. “As in: More search queries+More Ads=More Profits…And, even at 20 percent share, Yahoo does not have enough of that and what it has is getting less lucrative, even as its rival Google surges.”
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